What is a Sale Price?

S1-SA2-1126

Grade Level:

Class 5

Finance, Economics, India-specific, Maths, Computing

Definition

What is it?

The Sale Price is the final amount of money a customer pays to buy an item after any discounts have been applied. It is usually less than the original marked price of the item. Think of it as the 'discounted price'.

Simple Example

Quick Example

Imagine you see a new cricket bat with a price tag of ₹1000. During a special festival sale, the shop offers a ₹200 discount on it. The amount you actually pay, which is ₹800, is the Sale Price.

Worked Example

Step-by-Step

PROBLEM: A saree has an original price of ₹1500. The shop is giving a 10% discount during its annual sale. What is the Sale Price of the saree?

1. Identify the Original Price: Original Price = ₹1500
---2. Calculate the Discount Amount: Discount = 10% of ₹1500
---3. Convert percentage to decimal or fraction: 10% = 10/100 = 0.10
---4. Multiply to find the discount value: Discount Amount = 0.10 * ₹1500 = ₹150
---5. Subtract the Discount Amount from the Original Price: Sale Price = Original Price - Discount Amount
---6. Calculate the Sale Price: Sale Price = ₹1500 - ₹150 = ₹1350

ANSWER: The Sale Price of the saree is ₹1350.

Why It Matters

Understanding Sale Price helps you make smart choices when shopping and manage your money better. It's crucial in retail, e-commerce, and even in finance for calculating profits and losses. Shop owners, financial analysts, and even everyday consumers use this concept.

Common Mistakes

MISTAKE: Confusing Sale Price with Original Price. | CORRECTION: Sale Price is always after a discount; Original Price is the starting price before any discount.

MISTAKE: Adding the discount amount instead of subtracting it. | CORRECTION: Discounts reduce the price, so you must subtract the discount amount from the original price.

MISTAKE: Calculating the percentage discount incorrectly (e.g., finding 10% of the Sale Price instead of the Original Price). | CORRECTION: Always calculate the discount percentage based on the Original Price, unless stated otherwise.

Practice Questions

Try It Yourself

QUESTION: A school bag costs ₹750. There is a flat discount of ₹100. What is the Sale Price? | ANSWER: ₹650

QUESTION: A mobile phone's original price is ₹12,000. It is being sold with a 5% discount. What is its Sale Price? | ANSWER: ₹11,400

QUESTION: A pair of jeans has a marked price of ₹1800. The shop offers a 20% discount. If a customer also has a coupon for an additional ₹50 off after the 20% discount, what is the final Sale Price? | ANSWER: ₹1390

MCQ

Quick Quiz

What is the Sale Price if an item originally priced at ₹500 is sold with a ₹75 discount?

₹575

₹425

₹75

₹500

The Correct Answer Is:

The Sale Price is found by subtracting the discount from the original price. So, ₹500 - ₹75 = ₹425. Option B is correct because it shows the price after the discount.

Real World Connection

In the Real World

Whenever you shop online on apps like Myntra, Amazon, or Flipkart, you see items listed with an 'MRP' (Maximum Retail Price) and a 'Deal Price' or 'Sale Price'. The 'Deal Price' is what you actually pay after discounts, helping you save money on everything from new clothes to electronics.

Key Vocabulary

Key Terms

ORIGINAL PRICE: The initial price of an item before any discounts.| DISCOUNT: An amount by which the original price of an item is reduced.| PERCENTAGE: A way of expressing a part of a whole, usually out of 100.| RETAIL: The business of selling goods directly to customers.

What's Next

What to Learn Next

Now that you understand Sale Price, you can move on to learning about 'Profit and Loss'. This will help you understand how shopkeepers decide prices and discounts, and how they make money.